Litecoin (LTC) Price Faces Potential Breakdown from Crucial $60 Support Level

Litecoin (LTC) Price Faces Potential Breakdown from Crucial $60 Support Level

The Risk of Litecoin (LTC) Price Breakdown

In the world of digital currency, the Litecoin (LTC) price is facing a probable breakdown. The long-term ascending support line has been breached, and now there is a risk of breaking down from the horizontal support area. The outcome of this situation will have a whole lot of impact on the future direction of LTC’s trend.

LTC Price Analysis: Bearish Outlook on Weekly Timeframe

And once analyzing the weekly timeframe, a bearish outlook emerges. The breakdown from the 427-day ascending support line implies that the previous trend is over and a new one has begun in the opposite direction. Regardless of this, LTC continues  to trade within the $60 horizontal area, which has served as both support and resistance over recent months. The area has shown indications of buying pressure with a bounce and a long lower wick. Nonetheless, there is likewise resistance at the previous ascending support line, indicating a common movement after breakdowns.

The future trend will depend on whether the price breaks down from the $60 area or bounces back. A bounce and reclaim of the ascending support line could lead to a 55% increase towards the long-term resistance at $100. Conversely, a breakdown from the $60 area could result in a 25% fall to the closest support at $50.

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RSI Bearish Outlook and Bitcoin (BTC) Options Impact

In addition, the Relative Strength Index (RSI) is bearish, confirming the downward trend. Traders use the RSI as a momentum indicator, assessing whether a market is overbought or oversold and making decisions to buy or sell. With the RSI below 50 and decreasing, it signals a bearish trend.

Although while there are no whole lot of Litecoin news as of now, the expiration of $640 Million in Bitcoin (BTC) options today could potentially affect the LTC price.

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Will Bullish Divergence Reverse the Trend?

On the daily timeframe, the analysis provides a mixed outlook. The price has dropped under a descending resistance line since its yearly high, indicating a bearish trend. Nonetheless, the daily RSI shows positive trend signs with a breakout from its own trendline and positive trend divergence. In addition, it has moved out of oversold territory. These indicators suggest a possible upward movement.

The fact that the RSI turned positive trend at an important long-term horizontal support area further supports the  capacity for a positive trend reversal. Nonetheless, until the price breaks out from the descending resistance line, the trend cannot be considered bullish.

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Price Prediction: Breakout or Breakdown

The prediction for LTC’s price will depend on whether there is a breakout from the descending resistance line or a breakdown from the $60 area. A breakout could result in a 55% increase, while a breakdown may lead to a 25% drop.

Hot Take: The Destiny of Litecoin Hangs in the Balance

Future of the Litecoin’s price is uncertain as it hovers near key support and resistance levels. Traders and investors must closely monitor the  capacity breakout or breakdown to make notified decisions. The outcome will determine whether LTC continues  its upward trajectory or succumbs to further downward pressure. As the cryptocurrency market evolves, remaining notified and adapting to changing trends is critical for success.

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Bernard Nicolai emerges as a beacon of wisdom, seamlessly harmonizing the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the labyrinth of digital assets, Bernard’s insights echo like a resonant chord, touching the minds of seekers with diverse curiosities. His talent for deciphering the most intricate strands of crypto intricacies seamlessly aligns with his editorial finesse, transforming complexity into a captivating narrative of comprehension.

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